Netflix’s combination of low cost and flexibility seem to be giving it an edge over premium broadcast TV and VOD, according to a report from research firm Parks Associates. In the report, Netflix rated higher in customer satisfaction in both of the above-mentioned factors.
Brett Sappington, Director of Research with Parks Associates, observed the following:
“Consumers can pay for a month of Netflix for about the same amount as for two pay-TV VOD movies . . . Parks Associates research shows consumers know the quality of the OTT service is not comparable to pay-TV quality, but the cost-benefit comparison is enough to affect their purchase decisions.”
Sappington’s colleague, Parks Associates Director of Consumer Analytics John Barrett, concurred and pointed out that Pay-TV providers need to adapt to overcome Netflix:
“Netflix is competitive against VOD and premium channels because it has a decisive edge in cost . . . Its greatest weakness is picture quality, but there are times when the consumer will sacrifice quality for other considerations. Pay-TV providers need to develop alternative services that counter Netflix’s advantages in cost and flexibility.”
Do you find sacrificing picture quality with Netflix is a fair trade-off for lower cost and more choice, Netflixing Insiders?
[via The Sacramento Bee]
No, I like having my cable tv.
I shit caned the Cable TV over a year ago. I have Netflix online. $7.99 a month.
I have Block Buster two at a time out. And I get two free movies when I take the ones I got in the mail back to the store. I get 16 DVDs for $16.60 a month.
And I have Hulu Free. And can hit RedBox if I like. For under $30.00 bucks a month I got all I need.
Cable can stuff it. And really 95% of the crap on TV, is just that. Crap.
Doing fine with out it..
-Do you find sacrificing picture quality with Netflix is a fair trade-off for lower cost and more choice, Netflixing Insiders?
Just like lossy compression, the average person just can not tell nor care if what they are getting is pristine–as long as it meets some *perceived value* threshold.
I don’t think there’s that big of an image quality problem except when the cable companies are throttling. I can’t imagine paying more than $2 for a non-3D rental again
I want to get rid of cable so I can just use Netflix. I see the prices of VOD and scoff. Its insane when I can just get it for a little over a buck or even free in some cases. I know I can save money when I get rid of cable. One person wrote they spend $30 a month for what they needed and they don’t have cable. That is about half of what I am paying in cable.( $66.90 )
Reading that is convening me more and more to drop cable. Since I have Netflix I and was thinking of adding dvd rental. I like to keep everything together but if it is a reasonable price, I may just do blockbuster too.
My biggest problem with Netflix (and Amazon Prime) is that nothing is captioned. Cable TV has that over Netflix in a big way. But Video on Demand? Not paying for that. I’ll stick with whatever comes on TV on the channels I have. At the moment, that’s nothing, since I don’t even have a TV.
Frankly, I see absolutely no difference in the quality of tv shows and Netflix. I love both. I never do VOD.
In my area (Palm Springs,Ca) Time Warner charges between 4.99 and 9.99 for VOD. Guess what ? I’ve never paid that and never will. I can get all my new releases (which is all I want to watch-no old movies) from Redbox and Netflix.I may have to wait a few extra weeks but I don’t mind waiting.